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Question |
FSA |
HRA |
HSA |
|
Does the employee own the funds in the account? |
100% vested in their own deposits. Use it or lose it. |
Generally no. However, the employer can include employee vesting. |
Yes |
|
Can the money be invested and the employee earn interest? |
Generally, no. |
Generally no, but if employer funds are vested with the employee, such funds may be invested by the employee. |
Yes |
|
Can the employee use the funds for things other than medical expenses? |
No |
No |
Yes |
|
Can Over-The-Counter (OTC) medical purchases be reimbursed? |
Yes, with a Physician's written prescription. |
Yes, with a Physician's written prescription. |
Yes, with a Physician's written prescription. |
|
Can the employee take the money with them when they change jobs? |
100% vested in their own contributions. |
Generally no. However, if vested the employer may allow fund portability. |
Yes |
|
How can the employee access funds? |
Generally through claims reimbursements or the use of a debit card. |
Generally through claims reimbursements or the use of a debit card. |
Generally through claims reimbursements or the use of a debit card. |
|
Who can contribute to the account? |
Employee and employer. |
Employer only. |
Employee and employer. |
|
Who is eligible? |
Employers/employees. |
Employers/employees. No restrictions on plan size or statutory benefit design. |
Individuals/employers of any size who have established a qualified HDHP and are under age 65. |
|
Does the account require a plan modification or a high deductible health plan? |
No |
No, but an HRA is usually funded through some form of plan design modification; usually a higher deductible. |
Yes; a qualified HSA requires a High Deductible Health Plan (HDHP) that satisfies IRS requirements. |